Headline NFPs for July came in at 943,000 and topped the consensus forecast of 870,000
The euro plunged amid a widespread rally in the greenback as traders cheered Friday’s jobs data. Headline NFPs for July came in at 943,000 and topped the consensus forecast of 870,000. Furthermore, the unemployment rate came in at 5.4%, which was better than the 5.7% figure expected by markets. Against this backdrop, EURUSD dipped to four-month lows around 1.1740 on Monday before erasing intraday losses in recent trading. The pair was last seen changing hands in the 1.1760 region, unchanged on the day. Now, the common currency needs to hold above the 1.1700 support zone in order to avoid deeper losses in the coming days. In a wider picture, downside risks are increasing on the weekly charts.
GBPUSD failed to break the 100-DMA last week and finished lower on Friday. Today, the pair has settled in a tight trading range to turn marginally higher in recent trading. The cable bounced from fresh local lows around 1.3850 as buyers reemerged on a break to the 20-DMA that capped losses. On the upside, the immediate resistance is still represented by the mentioned 100-DMA, today at 1.3920 while the intermediate target arrives at 1.3900. On the hourly charts, the technical picture has improved in recent trading, with the RSI pointing north in the neutral territory, suggesting the pound could extend the recovery in the near term. The pair has also exceeded the 20-hour SMA, adding to a more upbeat intermediate outlook.
Gold prices briefly plunged to more than one-year lows earlier in the day before rebounding quickly. The XAUUSD pair dipped to $1,673 for the first time since May 2020 to trim losses to $1,740 during the European hours. The yellow metal now needs to regain the $1,800 figure in order to stage a recovery and avoid another sell-off in the coming days. Just above this level, the 20- and 100-DMAs lie that could deter potential buyers, especially as the dollar remains strong nearly across the board since last week. On the four-hour charts, the RSI has settled in the oversold territory, suggesting a technical bounce could be expected in the short term. On the downside, the immediate support is now represented by the $1,700 figure.
The Kiwi bounced from the 20-DMA earlier in the day to turn slightly positive during the European hours. The pair climbed back to the 0.7000 figure after a brief dip towards 0.6980. Despite the recovery, the New Zealand dollar lacks upside momentum as the greenback remains resilient nearly across the board. On the upside, the immediate target now arrives at 0.7025 while in a wider picture, NZDUSD needs to regain the 100- and 2200-DMAs that converge around the 0.7100 figure. On the four-hour charts, the pair is now stuck between the key moving averages, with downside risks prevailing as long as the prices stay below the 20-SMA, today at 0.7040.